Echelon Wealth Partners Inc. has partnered with Borden Ladner Gervais to structure the first trust in Canada that qualifies as a capital pool company under the policies of the TSX Venture Exchange. The trust is called the Value Capital Trust (TSXV: VLU.P.V).
In a release, Echelon says structuring the capital pool company as a trust means an entity could now complete certain types of mergers and acquisitions and financings more easily and tax-efficiently. It adds the trust structure is often preferred for REITs and other certain businesses that distribute income to investors.
Echelon also notes it expects to offer “several more of these off-the-shelf trust structure capital pool corporations with BLG in the near future.”